That's the extreme end, sure.
A more reasonable take would be to assess your risk tolerance and the possible benefit for each piece of software you install, and then make the best decision for yourself based on that assessment.
For some people, that means not running an extension that provides minor quality of life improvements due to the possibility of it turning malicious further down the road. For other people, it means the opposite.
Not sure why every security-related conversation devolves into one extreme vs. another extreme. Security must be appropriately balanced against risk tolerance, inconvenience, and a number of individual concerns and preferences.